Main points of investment
The company released its semi-annual report in 2010. the company achieved a half-year operating income of 660 million yuan, an increase of 12.83% over the same period last year, and a net profit of 68 million yuan, an increase of 21.34% over the same period last year.
The company's property management revenue was 546 million yuan, an increase of 19% over the same period last year. Revenue from case services, consulting services, value-added services and long-term rental apartments reached 46 million yuan, 2 million yuan, 50 million yuan and 12 million yuan respectively, with year-on-year changes of-19%, + 0.3%, + 8.6% and + 23.1%. It still achieved ideal performance growth in the market environment with great external impact of the industry.
In the first half of 2020, the company's net profit was 68 million yuan, an increase of 21% over the same period last year, and its profitability increased steadily.
During the first half of the year, the expense rate was 9.14%, down 1 percentage point from the same period last year. Among them, the sales expense rate / management expense rate / financial expense rate is 0.89%, 8.34%, 0.09%, 9.04%, 9.42%, 9.04%, 9.42%, respectively, and the profit level is high.
In the first half of 2020, the company signed a total of 530 projects, an increase of 13.73%, and a total signed area of 63.1033 million square meters, an increase of 4.12%. In this period, 37 new projects have been signed, with a newly signed area of 2.9419 million square meters. The company's key expansion has been stationed in provinces and cities, accelerating the layout of Beijing, Tianjin and Hebei, entering Hebei Province for the first time, and expanding the next city in the whole country.
Science and technology empower to improve service quality and create intelligent scene service providers. In the first half of the year, on the one hand, the company formulated the "Yuejia Plan" and proposed a "30-minute response mechanism" to improve customer satisfaction; on the other hand, it further promoted smart property management and signed a strategic agreement with Haikangwei to enable basic property services and smart buildings, intelligent industrial parks, AI business innovation, etc. Reach strategic cooperation with Hangzhou Zhongfang information technology, continue the digital operation platform of superior property, enhance the speed of digital transformation of property management; carry out in-depth cooperation with Alipay to officially launch "Yuejiaga" Mini Program in Alipay APP, and upgrade the online service model.
Urban service has landed in Jingdezhen, Jiangxi Province, and has actively set up joint ventures in other areas. In July, the company announced that it and Jingdezhen Guoxin City Operation and Development Co., Ltd. jointly funded the establishment of a joint venture company, the two sides complementary advantages, professional strength superimposed local resources, and jointly expand the field of urban services. At the same time, the company began to cooperate and replicate in different places, establishing Jiangxi Guoxin Nandu Commercial Management Co., Ltd., Nandu Yuetong (Hangzhou) Wisdom property Service Co., Ltd., Nandu (Jiaxing) Wisdom property Service Co., Ltd., Nandu Zhenghe (Shandong) property Service Co., Ltd., focusing on expanding Zhejiang, Anhui, Shandong and other regional markets. At present, there is a broad space in the field of urban services, and the company's active layout in this blue ocean field may become a new growth point of performance in the future.
Investment advice: the company's performance growth is stable, science and technology empower property management, urban service has become a new growth point of the company in the future. Institutional property has a dominant position and great potential in the industry. It is estimated that the company's EPS in 2020 and 2021 will be 1.08 yuan and 1.34 yuan respectively, and the corresponding PE will be 26 times and 21 times respectively according to the closing price on August 25, 2020, giving it a "prudent overweight" rating.
Risk hint: the labor cost is rising too fast, and the project expansion is not as expected.